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US Fed may not raise rates in 2015: Morgan Stanley

Thu, Mar 19, 2015 - 7:41 AM

Morgan Stanley's chief US economist said on Wednesday the US Federal Reserve may not increase interest rates in 2015 due to weak inflation and risks to the economy due to a surging dollar after the central bank downgraded its economic forecasts.

PHOTO: REUTERS

[NEW YORK] Morgan Stanley's chief US economist said on Wednesday the US Federal Reserve may not increase interest rates in 2015 due to weak inflation and risks to the economy due to a surging dollar after the central bank downgraded its economic forecasts.

"With our expectation that core inflation falls further from goal, and the lingering threats to growth and inflation from the rapid appreciation of the US dollar, we look for the Fed to forego rate hikes this year," Morgan Stanley chief US economist Ellen Zentner wrote in a research note.